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August 7, 2001
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Money > Business Headlines > Report August 7, 2001 |
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Tata Finance files FIR against Pendse, 5 othersBS Bureaus Tata Finance Ltd on Monday filed a first information report against former managing director Dilip Pendse and five other senior executives with the economic offences wing of the Bombay Police. The Tatas filed a complaint of cheating, falsification of accounts, forgery and criminal breach of trust, TFL director Kishore Chaukar told Business Standard. The complaints also relate to causing harmful losses to Tata Finance. The FIR has been filed under Section 120 D of the Indian Penal Code as well as under sections 417, 418 and 464 of IPC. The Tatas have alleged that the executives transferred Tata Finance funds to Niskalp, an investment subsidiary of TFL, without any authorisation. These transactions reportedly caused a loss of over Rs 1.50 billion to the company. The day-to-day operations of TFL were under the control of Pendse between June 1, 1996 and May 31, 2001. Earlier, the company had said that the unauthorised financial transactions, recently discovered by the board "include, inter alia, diversion of funds to TFL's subsidiary Niskalp Investment and Trading Company Ltd and certain other associate companies, whose affairs were also controlled and managed by the then management of TFL." Niskalp and the associate companies deployed a substantial part of these funds in speculative trading of certain scrips. These led to sizable losses in Niskalp and other associate companies. The TFL board is probing the deals through AF Fergusson, the accounting firm, which has already revealed several operational lapses and irregularities that the former management team had allegedly committed in the functioning of TFL and in compliance with its reporting requirements to the regulatory authorities, including possible mis-declarations/ mis-statements in the letter of offer issued by the company in March 2001 in relation to the issue of preference shares. TFL had made losses on account of investments made in Global Telesystem and Vakranagee Software. The Securities and Exchange Board of India asked for clarifications on the losses made by Niskalp Investments ahead of its convertible preference issue of Rs 910 million. Niskalp has ceased to be a subsidiary of TFL effective June 28, 2001. TFL recently sold 50 per cent of its stake in Niskalp Investments to another Tata group company, Tata Sons, for a price of Rs 410 million. Powered by YOU MAY ALSO WANT TO READ:
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